asset
(Conventional definition) A negotiable item, security, promissory note, or similar thing that can be sold or exchanged for money.
(Kiyosaki's non-standard definition) Same as the conventional definition, except that Kiyosaki requires that assets must also earn money for you by creating an income instead of costing money to own or maintain.
Kiyosaki asserts that an "asset" that costs more to maintain and own than it generates in income is not his idea of an asset, and that it is unwise to spend money on such things instead of the kinds of assets that bring you money
liability
(Conventional definition) A debt, lease, agreement to pay, or other item that reduces your net worth; the opposite of an asset. Whereas a house might be an asset, the mortgage against the house is a liability.
(Kiyosaki's non-standard definition) Same as the conventional definition, but it includes items that can be sold but that cost the owner more money than it brings in.
cash flow
The proportion of income (cash in) to spending (cash out). A positive cash flow occurs when income exceeds spending. A negative cash flow occurs when spending exceeds income.
net worth
A person's net worth is the total value of everything he or she owns (assets, to use the conventional term) minus the total value of everything he or she owes to others (liabilities, to use the conventional term).
A person can have a high net worth but not a lot of cash, if his or her wealth is mostly tied up in land or other things that cannot be easily sold.
A person will have a low net worth if he or she owes a lot of debt but few assets.
invest
To purchase an item, security, or other asset with the intent of either selling it later for a higher price or of using it to generate income
sophisticated
Enlightened, world-wise, knowledgeable, and with a well developed perspective
CPA
Chartered Professional Accountant, a person licensed to help members of the public with tax and other financial advice
fundamental
necessary, core, and essential (example: "the fundamental principles of chemistry")
reflecting
thinking about something that has happened in the past
financial programming
attitudes, habits, value systems, and decision making strategies related to money; often something absorbed from others without conscious effort
